Demystifying the economy | Where do Loto-Québec’s jackpots come from?

Every Saturday, one of our journalists answers, in the company of experts, one of your questions on the economy, finances, markets, etc.

This is a great opportunity to somewhat demystify the operation of a government corporation like Loto-Québec. First of all, you don’t have to worry, Mr. Paradis, the lotteries technically cost nothing to the Government of Quebec and, even better, they brought in $1.1 billion last year, the dividend paid by Loto-Quebec . The state-owned company also gave back 1.5 billion to the winners, according to its annual report covering its activities from March 31, 2021 to March 31, 2022.

All this money obviously comes from revenue from ticket sales, player wagers in establishments and online. Loto-Québec does not specify this amount of gross revenue in its annual report. It presents only the “products”, that is to say the receipts from which we deduct the prizes awarded to the winners and certain other expenses, we explain to the state-owned company.

Overall, for all its draws, casinos, “scratch cards” and online games, Loto-Québec generated “products” of $2.2 billion in 2021-2022. If we focus solely on the lottery sector, which includes draw lotteries such as Lotto Max and Lotto 6/49, “instant” lotteries such as La Poule aux eggs d’or and “betting on events”, especially sports, revenue of 1.043 billion was reported for 2021-2022. These are the best results ever recorded for the lottery sector, mainly attributable to the enthusiasm generated by Lotto Max this year, explains Renaud Dugas, spokesperson for Loto-Québec.

“We had major jackpot streaks, record prize pools of 140 million and streaks where the jackpots weren’t won, which is exceptional. »

Anonymity prohibited

Lotteries like Lotto Max and Lotto 6/49 are available across Canada. Each responsible Crown corporation adds its own revenue to it, allowing for jackpots that would be impossible to achieve in every province. This is how, on June 7, we were able to award the largest prize in the history of Loto-Québec, a $70 million jackpot and seven smaller prizes, to a Montérégie resident, Marcel J. Lussier.

“With the Quebec market alone, we wouldn’t have the pool of people to offer big prizes of this type,” says Mr. Dugas.

We sometimes forget that a winner cannot choose anonymity. By signing a ticket, you consent at the same time to the publication, if Loto-Québec “deems it appropriate”, of your name, your region and your photograph. “It’s part of the integrity of the game, people who buy tickets want to make sure that the winners are real people,” said Renaud Dugas. Virtually all winners of prizes of $10,000 or more are listed on the Loto-Québec site. The biggest prizes are the subject of a press conference and the winners often see their names published in most Quebec media.

“We supervise them, all the same, it’s done in a very professional way, assures the spokesperson. We advise them, and we call them back two months, six months later. In general, it’s going really well. »

Each his own

How are prize amounts calculated? It all depends on the game. Lotto Max and Lotto 6/49, for example, have a theoretical payout rate of 48%. If, for example, Quebecers buy tickets with a total value of 10 million, 4.8 million will be donated to hundreds of winners. Although these are the two most popular products, they are not the most profitable. Lotteries such as Triplex and The Golden Egg Hen, in particular, have theoretical return rates of 57.8% and 65.45%.

This theoretical rate of return obviously does not mean that you can sue Loto-Québec if you do not win. For Lotto 6/49, for example, it is estimated that you have a 1 in 6.6 chance of winning a prize, which is generally minimal. For the jackpot, the odds are very slim, 1 in 13,983,816. Statistically, even buying one ticket a week for your entire adult life for 62 years, you have a 1 in 4140 chance of winning the jackpot once.